Assignment1 ACC220 W5 Assignment
Problem
For this week’s assignment, address the following scenarios:
1. The vice president of finance asks the accounts payable (AP) clerk to write a check in the name of the president for $10,000. He and the president will sign the check (two signatures needed on a check of this size). He further instructs the AP clerk not to disclose this check to her immediate supervisor. What should the AP clerk do? Should she prepare the check? Should she inform her immediate supervisor? Discuss with internal controls in mind.
2. A bank reconciliation takes time and must balance. An employee was struggling in balancing the bank reconciliation. Her supervisor told her to “plug” (make an unsupported entry for) the difference, record to Miscellaneous Expense, and simply move on. Discuss the internal controls problem with this directive.
3. The bank reconciliation revealed that one deposit had cleared the bank two weeks after the date of the deposit. Should this be of concern? Why, or why not?
Assignment 2 ACC220 Week 5
Exercise
Be sure to complete all steps and sections of the problem and show all your work.
1. Which of the following transactions will require a journal entry? Indicate if it will be a debit or a credit, and to which account the entry will be recorded.
Transaction | No Journal Entry | Journal Entry Needed | Debit | Credit |
Overcharge by Bank (Error) | ||||
Interest Income | ||||
Automatic Loan Payment | ||||
Wire Transfer by Customer | ||||
Deposit in Transit | ||||
Outstanding Check |
2. On July 2 Kellie Company has decided to initiate a petty cash fund in the amount of $1,200. Prepare journal entries for the following transactions:
a. On July 5, the petty cash fund needed replenishment, and the following are the receipts: Auto Expense $125, Supplies $368, Postage Expense $325, Repairs and Maintenance Expense $99, Miscellaneous Expense $259. The cash on hand at this time was $38.
b. On June 14, the petty cash fund needed replenishment, and the following are the receipts: Auto Expense $425, Supplies $95, Postage Expense $240, Repairs and Maintenance Expense $299, Miscellaneous Expense $77. The cash on hand at this time was $110.
c. On June 23, the petty cash fund needed replenishment and the following are the receipts: Auto Expense $251, Supplies $188, Postage Expense $263, Repairs and Maintenance Expense $182, Miscellaneous Expense $203. The cash on hand at this time was $93.
d. On June 29, the company determined that the petty cash fund needed to be decreased to $1,000.
e. On June 30, the petty cash fund needed replenishment, as it was month end. The following are the receipts: Auto Expense $14, Supplies $75, Postage Expense $150, Repairs and Maintenance Expense $121, Miscellaneous Expense $39. The cash on hand at this time was $603.
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Discussion
Income Statements
One of the four financial statements is the income statement, which presents the organization’s revenue, expenses, and net income. Go to Yahoo Finance and select a company. Then, share with the class either the company’s gross profit or total operating expenses, as well as the company’s net income. Go to at least 2 other colleagues’ posts and calculate the colleague’s selected company’s gross profit or total operating expenses that were not shared with the class.